Hope for former KCC workers as gov’t commits timeline to clear unpaid benefits

Former employees of the defunct Kenya Cooperative Creameries (KCC), who have spent almost three decades fighting for their unpaid benefits, have received renewed hope after the government committed to resolving their claims within a clear timeline.

Appearing before the Senate Committee on Labour and Social Welfare on Tuesday, Cabinet Secretary for Cooperatives and MSMEs Development, Wycliffe Oparanya, announced that an Interministerial Committee would convene its first meeting next week.

The committee comprising representatives from the Office of the Attorney General and the Ministries of Cooperatives, Labour, Agriculture, and National Treasury will audit and verify claims estimated at Ksh 204 million, and submit its findings by end of October 2025.

Oparanya added that the recommendations would be included in the November supplementary budget, pending approval by the National Assembly.

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“We expect a supplementary budget to be processed in November and we would then appeal to this Committee to consult the National Assembly to approve the payments to the former KCC workers,” said Oparanya.

The announcement marks the most tangible step toward resolving the long standing dispute, which dates back to the 1990s when the original KCC collapsed, leaving hundreds of workers jobless and without compensation.

In a rare moment of accountability, Oparanya also issued a formal apology to the Senate Committee for repeatedly skipping previous appearances; including ignoring a formal summons a move that had earned him a Ksh 500,000 fine. He pleaded for leniency, citing unavoidable circumstances. After intense deliberations, the Committee agreed to lift the fine, allowing proceedings to move forward.

“We expect a supplementary budget to be processed in November and we would then appeal to this Committee to consult the National Assembly to approve the payments to the former KCC workers,” said Oparanya.

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Also present at the session was Labour Cabinet Secretary Alfred Mutua, who called for the drafting of a Cabinet Memo to secure full Executive backing for the planned compensation.

Senators, led by Committee Chair Julius Murgor (West Pokot ) warned that any further delay would deepen the suffering of the ageing petitioners—many of whom have remained unemployed since 1997.

The matter has long been complicated by legal and structural hurdles. The AG’s office has advised the government to pursue an out-of-court settlement, pointing out that while the liabilities of the former KCC were transferred to the New KCC, workers’ dues were not leaving them in prolonged legal limbo.

The Interministerial Committee is expected to submit its final report to the Senate Committee by 6th November 2025, potentially paving the way for long-overdue compensation.

By Obegi Malack

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